Financial Services Professionals
As the owner of a financial services firm, you have a great weight of responsibility on your shoulders. You are obligated to ensure your clients get the best financial services you can possibly offer. You are entrusted with your client’s money. You must ensure that your employees are top notch, honest professionals. These and many other responsibilities are part of managing your business on a day-to-day basis. While you may not be able to avoid one hundred percent of potential problems, you can protect your business with the appropriate types of insurance for a financial services firm.
General Liability Insurance
If your financial services company has client and employee traffic regularly, general liability insurance will protect you from unforeseen accidents. If a client trips on his shoelaces while walking through your offices, general liability insurance will protect you from costly lawsuits. It also protects you from theft by clients or employees, and covers other unexpected problems that you may not have previously thought of.
Business Owners Policy (Bop)
Business owners insurance protects the building your business is in, plus the contents inside that building. Your office building is a financial asset that you must have in order to continue operating at a profit. If the office is damaged in a storm, business owners insurance will cover the cost of repairs. It may also cover the expenses of using a temporary office location while yours is being fixed.
Financial service firms also have many valuable items inside their business offices. A business owners policy will protect your company from the loss of valuable papers for example, such as client’s financial statements or living trust documentation. A business owners policy protects critical electronic data as well, including custom financial services software, contracts and client files.
Professional Liability Insurance
Financial service professionals work with money. When mistakes are made, those mistakes can be extremely costly to their clients. Professional liability insurance, or errors and omissions insurance, protects you from professional mistakes. If you turn in a client’s income tax return without signing and dating it, your client may suffer fines from the IRS. Professional liability pays your client if they suffer financial damage from your mistake.
Commercial Auto Policy
If you travel for the purpose of conducting business, you need business auto insurance. Business auto insurance protects your company vehicles and personnel if something happens to them while they are traveling for work purposes. If you visit a client to take inventory for their estate for example, auto insurance will protect you and your vehicle if you are in an accident.
Workers Compensation Policy
If your financial services company has employees, regardless of what their job description is you are required by law to carry workers comp insurance. Workers comp protects your employees from expenses and lost income that are caused by an injury at work. It also protects your company from being sued by an injured employee.
Surety bonds are a way for you to guarantee your work to your clients. Some types of clients may require you to be bonded before you can even win their business contract. Bonds guarantee that you have the means to supply the financial services you are contracting for.
Commercial business insurance like the types noted above is the best way to protect your financial services business from hardship, disaster or unexpected events.